From April 2026, farmers and landowners who operate diversified enterprises will face new legal obligations for reporting changes to their properties. These rules, introduced under the Non-Domestic Rating Act 2023, aim to improve the accuracy of business rate assessments and support more frequent property revaluations. Failure to comply could result in fines of up to £3,000, so preparation is essential.
Who Will Be Affected?
While traditional agricultural land and farm buildings remain exempt, the rules will apply to non-agricultural uses of farmland or buildings. This includes:
- Equine facilities such as livery yards, riding schools, and arena or facility hire
- Converted structures like kennels, catteries, or storage units
- Other diversified businesses generating income, even if currently eligible for relief or not paying business rates
Essentially, if your property is on the rating list and used for commercial purposes, these rules may affect you.
What Will You Need to Do?
From 1 April 2026, ratepayers must:
- Report changes promptly – including alterations to leases or occupancy, and physical modifications like extensions, demolitions, or refurbishments.
- Confirm details annually – verify that the information held about your property is accurate.
- Provide a taxpayer reference – such as a self-assessment or corporation tax reference, VAT registration number, or National Insurance number, within 60 days of becoming liable.
Even properties with zero business rate liability, or those not yet formally registered, will fall under these reporting obligations.
Consequences of Non-Compliance
Failing to meet the new requirements can carry substantial penalties:
- £100 for not providing a taxpayer reference number
- £60 per day after a 30-day grace period
- Up to £1,800 in total, rising to £3,000 if false information is supplied deliberately or carelessly
Additional fines may also apply for failure to report other changes, depending on the rateable value and the duration of non-compliance.
Preparing Your Business
Taking proactive steps now can help avoid penalties and ease the transition:
- Review your diversified operations – identify which properties may now fall under the reporting rules.
- Keep accurate, up-to-date records – track occupancy, leases, income, and physical changes to buildings.
- Consult your accountant or bookkeeper – confirm that your systems will meet the new requirements and that you’re ready for annual confirmations.
- Engage with support – For specific property questions, the VOA can clarify whether a property is on the rating list, rateable value queries, or reporting requirements.
The reporting system will be phased in from April 2026, with voluntary reporting from 2027 and full enforcement from 2029. Starting early and keeping your records in order will reduce stress and help you stay compliant.
Key Takeaway
Even if your diversified business currently pays no business rates, the new reporting duties may still apply. Equine facilities, converted buildings, and other income-generating uses of farmland should all be reviewed now. Being proactive is the best way to avoid fines and ensure your business is prepared for this major change.